Parex banka                                                     24.03.2005.

  

PRX: Parex banka’s profit for 2004 reaches LVL 16,452 million



Parex banka has conluded the year 2004 with profit of 16,452 million lats – 

this was earlier confirmed by the international auditing company Ernst & Young, 

and was announced today at the general meeting of the shareholders by the 

president and chairman of the Board of Parex banka Mr. Valery Kargin. After the 

management report on the operations of the bank was presented by the president 

of Parex banka Valery Kargin, the shareholders have voted to approve the Bank’s 

consolidated annual report for 2004.



According to the Parex banka’s management report, the year 2004 turned out to 

be another year of significant achievement for Parex banka. During the year, 

the Bank’s assets grew by 33.2% to LVL 1,363 million, the volume of deposits 

grew by 32.1% to LVL 1,058 million and the volume of loans issued increased 

by 43.7% to LVL 640 million. The growth of the Parex banka mortgage portfolio 

has shown exceptional results in the Latvian commercial banking sector, 

increasing by 104.6% to LVL 168 million.



As at 31 December 2004, Parex banka’s market share in terms of assets was 17.8%, 

in terms of deposits 20.4% and in terms of loans issued 15.2%. 



Year 2004 was marked with many notable events for Parex banka. Thus, for 

example, last year Parex banka received the largest syndicated loan made to 

the Latvian private sector, for the amount of EUR 117 million, with 25 

international banks participating in the deal. Secondly, Parex banka, with 

the acquisition of AP Anlage und Privatbank, became the first bank from the 

new members of the European Union to start operations in Switzerland. Thirdly, 

Parex banka established the first business activity index in Latvia - Parex 

Index, which reflects the opinion of the business community on the level of 

economic development of the country. The Parex Index is calculated in 

cooperation with SKDS, center of market and public opinion research, who 

carry out quarterly inteviews with the sample of 750 businesses.



Parex banka has been active in issuing payment cards in all three Baltic 

States. This is one of  Parex banka’s high-growth areas of activities. The 

planned issue volume of “Parex New Credit Card” has increased two times, 

reaching 23 thousand cards at the end of the year. By popularising payment 

cards as a convenient instrument of payment for products and services, Parex 

banka has significantly increased the turnover on card accounts, which in 2004 

exceeded LVL 340 million. Significant changes in distribution policy for cards 

prompted by the improved technology being  implemented this year. The issuance 

of payment cards, which was previously done through centralised distribution, 

has been shifted to branches. Also, as a result of detailed market research 

and with the objective of  introducing people to banking services at the 

earliest possible stage, Parex banka launched Parex ISIC Scholar, Parex ISIC 

Student, and Parex ITIC Teacher payment cards, which offer various discounts 

and other benefits to cardholders.



The leading position of Parex banka in Latvia in 2004 received international 

acknowledgement - The Banker magazine has named Parex banka the Best Domestic 

Bank in Latvia, while Euromoney magazine has named Parex banka the Best Debt 

House in Latvia for its success in the securities market.  Global Finance 

edition named Parex banka as the Best Foreign Exchange Bank in Latvia, 

highlighting achievements of the Bank in this area.



Parex banka is the largest bank in Latvia in terms of assets, deposits, capital 

and reserves.



Parex banka press department

Additional information can be obtained by phone: +371 7778572 or +371 9450985.

Natalja Rodionova, Head of International Communications